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Posted Tue, 22 Oct 2024 10:55:16 GMT by budlbud
Hello, We have a contract with a UK company, but a service is being provided in Australia. Some of this service will likely be used by the UK branch of the company too. Would this be 0% VAT still? We have another contract with a UK company, where we are providing a service in Jersey. Would this also be 0% VAT? Thanks
Posted Wed, 23 Oct 2024 07:25:35 GMT by HMRC Admin 19 Response
Hi,
Please can you confirm the nature of the service.
Thank you.
Posted Wed, 23 Oct 2024 07:52:54 GMT by budlbud
hello, thanks for your reply, this is for a software service Thanks
Posted Mon, 04 Nov 2024 08:51:48 GMT by budlbud
Hello, Please can you advise on the above. Thanks
Posted Wed, 06 Nov 2024 10:08:33 GMT by HMRC Admin 21 Response
Hi,
Generally if you provide a service of this nature then it will be treated under the General Rule of services whereby the Place of Supply is deemed to be where the business customer belongs.
Please see the guidance below:
6. The place of supply rules for services
However for electronically supplied services there are separate Use and Enjoyment Rules.
The use and enjoyment rules apply in either of the following situations where the place of supply would be:
The UK but the services are effectively used and enjoyed outside the UK.
Outside the UK but the services are effectively used and enjoyed in the UK.
Please see the guidance below:
13. Use and enjoyment.
Thank you.

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